Clark & Taylor has pulled out of the pitch for the £2m Future Zone account after the computer games retailer warned of spiralling losses and called for a £4m rescue package.
Future Zone’s parent company Rhino last month issued a warning that it would lose £2m this year and was looking for backing from the City. It blamed the losses on the premature announcement that new technology from Sony, Nintendo and Sega will be launched later this year. Rhino says consumers are deferring purchases until then.
Clark & Taylor chief executive Simon Clark says: “We have pulled out of next week’s pitch because we have become increasingly concerned about the financial stability of Future Zone following the announcement of its loss and rights issue.”
Rhino says, however, that 1995 and 1996 are expected to be important years for the computer games industry and the group is well placed to take advantage of the growing market.
This autumn will see the launch of CD-based machines the Sony Playstation and the Sega Saturn.